The Impacts of Industrial and Entrepreneurial Work on Income and Health: Experimental Evidence from Ethiopia

Abstract

Working with five Ethiopian firms, we randomized applicants to an
industrial job offer, an "entrepreneurship" program of $300 plus
business training, or control status. Industrial jobs offered more
and steadier hours but low wages and risky conditions. The job offer
doubled exposure to industrial work but, since most quit within months,
had no impact on employment or income after a year. Applicants largely
took industrial work to cope with adverse shocks. This exposure, meanwhile,
significantly increased health problems. The entrepreneurship program
raised earnings 33 percent and provided steadier hours. When barriers
to self-employment were relieved, applicants preferred entrepreneurial
to industrial labor.